UPDATE 1-Lehman sees US large-cap banks' 2008 loss at $79 bln

June 9 (Reuters) - U.S. large-cap banks will likely post
losses of about $79 billion in 2008, with net charge-offs for
the second quarter expected to total $17 billion, said Lehman
Brothers analyst Jason Goldberg, who also cut his 2008 outlook
and price target for large banks.

Goldberg, who upped his loss estimate for large-cap banks
by about 30 percent, said increased severity on real-estate
related credits was the main driver of higher losses.

"The deteriorating credit environment and more exotic
assets coming on balance sheets could continue to weigh on
results," Goldberg wrote in a note to clients.

The analyst widened his 2008 loss estimate for National
City Corp NCC.N and cut his full-year profit estimates for
several large-cap banks, including Citigroup Inc (C.N: Cotización), Bank of
America Corp (BAC.N: Cotización) and JPMorgan Chase & Co (JPM.N: Cotización).

Credit card losses were rising mainly in housing troubled
states such as California, Florida, Arizona and Ohio, Goldberg
said. He expects reserve additions to slow in the second
quarter, but said they will likely remain elevated.

Goldberg estimates "total credit costs to be in the
neighborhood of last quarter's $27 billion hit and with
leverage lease hits at some."

"For the overall coverage universe we have posited that the
industry's dividend could be largely secure, barring something
more than a mild recession," Goldberg said.